Happy Workplace

China Airlines is dedicated to establishing a caring and protective enterprise. Through providing employees with total care and support, enhancing employees professional competence, enforcing mutual communication between CAL and employees, building a safe working environment, we provide employees with a happy workplace and an enjoyable lifestyle.

Employee Development

CAL emphasizes on the development of employees and ensures the training courses enhance their skills. CAL also improves the competencies of the Company's managers at various supervisory levels, and cultivate managerial capabilities and perspectives among personnel with potential for advancement.

Sound Training System and Framework

CAL has established a sound training system and framework to develop aviation professionals. We adopt diversified training methods, including on-site and online training courses, invest in training hardware and software, and develop training courses in accordance with related laws and regulations. CAL values the functional development of employees and integrates fundamental aviation training with hands-on practice. In addition, CAL organizes business strategy and management- related training for all managerial levels and employees with potential on a regular basis to improve their horizons and expertise.

Based on the demand of education and training, the Training Advisory Committee has been established to plan annual education and training activities for all employees. The primary strategic objective of CAL's training and development program is to enhance employee job skills. Adopting the training framework of China Airlines Lecture Hall, CAL ensures that all employees are equipped with skills to perform their duties and job functions.

CAL as established Talent Development Committee, chaired by the President, with senior vice presidents serving as members. The Talent Development Committee is responsible for regularly reviewing and improving training for potential talents. Each department refers potential talents to the Talent Development Committee, which then determines their qualifications and development paths. During training, potential talents are provided with appropriate job rotations and management skill training, in order to build their management capacity and experience. For a long time, both at home and abroad, CAL has sought out and successfully trained many potential talents to serve as unit chiefs. CAL will continue to provide them with opportunities to develop their careers, in hopes of achieving corporate sustainability.

In 2019, CAL invested about TWD 254 million in employee training and development. The total number of training hours exceeded 300,000, and the completion rate of training reached 98.97%.

Employee Development Programs in 2019

Employee Development Program Business Benefits Quantitative Impact of Business Benefits Proportion of Employee Participation in the Program

Training for Passenger Transport Marketing Personnel (Ticketing, New Product Sales, Marketing Skills and Observation, Knowledge of and Marketing Skills in Cargo Transport)

  • Improve the professional skills and knowledge of passenger and cargo transport marketing personnel
  • Improve the overall quality of service
  • Increase customers, supply, and revenue
Due to external impacts such as the China-US trade war, total revenue from passenger and cargo transport decreased by TWD 4.09 billion in 2019 as compared to 2018, but revenue from passenger transport continued to grow, by TWD 1.93 billion Proportion to total employees: 8.3%

Annual safety retraining of front-line operating units, including repair and maintenance, ground service, air service, and pilot personnel should receive professional retraining every year according to their work rights and responsibilities to ensure that personnel implement the operating procedures as required

  • Elevate safety awareness and enhance the security awareness
  • Be familiar with operating procedures
  • Be familiar with emergency response procedures
Number of flights in 2019: 86,477
GDI direct lost in 2019 due to human factors: US$297,154
Proportion to total employees: 70.3%
Maintenance: 2,377
Ground services:1,590
Cabin Crews: 3,270
Pilots: 1,285

Regular Service Training for Cabin Crew Members and Ground Services Employees to Strengthen Service Concepts and Skills

  • Recall the passion of service
  • Enhance service skills
  • Strengthen the professional ability to handle and solve problems
  • Reduce customer complaints and elevate the quality of service
Enhance the quality of service and reduce compensation issues derived from customer complaints to increase the revisit rate
The customer satisfaction rate of ground services in 2019: 89.6
The customer satisfaction rate of cabin crew members: 89.7
Proportion to total employees: 40.1%
Cabin crews: 3,270
Ground services: 1,590

Refreshment Training for Pilots based on Fleet Plans and Regulations to Ensure Flight Safety

  • Enhance flight safety.
  • Comply with regulations and be familiar with the operating procedures
2019 High-level risk of unsafe events due to negligence of pilots: 0 Proportion to total employees: 10.60%
Pilots: 1,285

Note: To reduce GDI (ground damage incidents), CAL organizes training for front-line employees on a regular basis.

Industry-Academia Collaboration

CAL has promoted its campus talent development program since 2013 by taking advantage of its abundant practical experience and sound aviation training facilities and courses. In response to the government's policy on industry-academia collaboration and talent development, CAL has cooperated with colleges and universities nationwide to offer internship programs that last for six months to one year in variety fields. CAL also offers interns scholarships and allowances and arranges training courses for them. To start an internship, interns are required to pass the training courses first. In 2019, for the ninth consecutive year since 2011, CAL was awarded as a Top 20 Youngsters' Favorite Brand by Cheers magazine. Through industry-academia collaboration, CAL will continue to provide students with opportunities to gain aviation expertise and make their career plans, and thus help CAL recruit potential talents.

In 2019, a total of 99 students participated in the industryacademia collaboration programs and summer internship programs.

Maintenance Talent

Industry-academia cooperation programs help promote training in aerospace technology maintenance and repair through a series of comprehensive aircraft maintenance courses. Outstanding students are offered opportunities to work for the CAL in the future.

Aerospace Engineering Talent

Civil aviation courses are offered in collaboration with universities to bridge academic theory with practical skills. Students who have successfully completed the civil aviation program are given priority to be hired by CAL.

Campus Talent Incubation

In cooperation with a number of educational institutions, CAL offers students training in professional customer service, ticketing, and marketing. The goal is to cultivate sales and marketing talent in the aviation industry. In addition, outstanding teachers within the CAL are also recruited as lecturers to conduct aviation management and service management courses at various universities so as to enhance the practical aspects of on-campus theoretical training.

Industry-Academia Collaboration in 2019 (99 Students)

Ground Dervice (1-year term)
Dayeh University; Chung Yuan Christian University; China University of Science and Technology; Wenzao Ursuline University of Languages; Tainan University of Technology; Chang Jung Christian University; National Kaohsiung University of Science and Technology; National Taiwan Ocean University; National Yunlin University of Science and Technology; National Taipei University of Nursing and Health Science; Feng Chia University; Kainan University; I-Shou University; Vanung University; Overseas Chinese University; Shih Chien University (Kaohsiung Campus); Fu Jen Catholic University; Ming Chuan University; Takming University of Science and Technology; Hsing Wu University; Providence University; Lunghwa University of Science and Technology
Ground Service (short-term)
Chung Hua University; Yuan Ze University; Aletheia University; Kainan University; Vanung University; National Taiwan University; Chung Yuan Christian University; National Taipei University of Business; Soochow University; Shih Chien University; Fu Jen Catholic University
Cabin Service (1-year term)
China University of Science and Technology; National Kaohsiung University of Hospitality and Tourism; National Yunlin University of Science and Technology; Vanung University; Overseas Chinese University; Ming Chuan University
Education Technology and Visual Design
Fu Jen Catholic University; Asia University
Information Technology
Ming Chuan University; Hsing Wu University
Summer Internship
Chung Yuan Christian University; National Chiao Tung University; National Cheng Kung University; National Formosa University; National Kaohsiung University of Science and Technology; National Taipei University of Technology; Tamkang University
Summer Internship Completion in 2019

Employee Rights

CAL attaches great importance to the opinions and well-being of its employees. In addition to regular reviews of employees' salary and benefits and labor-management meetings, CAL has established a number of communication channels and activities to enhance cohesion. CAL also respects the independence of labor unions in accordance with the law and expects positive interaction.

Salary and Benefits

CAL firmly believes that employees are the most valuable assets and that it is important to protect both employee benefits and shareholders' equity. For these reasons, CAL provides competitive salaries and benefits for all employees. The salary and benefit package of each employee will not differ according to gender, race, religion, political affiliation, or marital status. Whenever the minimum wage of a particular global location is raised, we promptly review our salary standards and make necessary adjustments in a timely manner. In 2019, CAL adjusted salaries by 2% on average. Employees who are required to work overtime due to the nature of their employment receive reasonable overtime pay, in accordance with regulations. No employee is forced to work against his or her will.

Male/Female Salary Ratios of CAL Group in 2019

Male/Female Base Salary Bonus
Business operations 1.17 1.24
Flight and cabin crews 1.21 1.24
Maintenance personnel 1.18 1.12
Others 1.17 1.15
Male/Female Base Salary Bonus
Business operations 1.02 1.03
Flight and cabin crews 1.17 1.91
Maintenance personnel 1.08 1.68
Others 1.06 1.29
Male/Female Base Salary Bonus
Business operations 1.19 1.42
Flight and cabin crews 3.17 2.58
Maintenance personnel N/A N/A
Others 1.12 1.08

Note 1: Flight and cabin crews include pilots and flight attendants, pilots were mostly male, while flight attendants were mostly female. Pilots' salaries are higher than flight attendants', resulting in a large difference in the male/female salary ratios; others include executives higher than the rank of vice president, auditors, accountants, information technology personnel, and other employees that are not within the aforesaid categories.
Note 2: Base salary: basic pay; bonus: pay outside base pay.
Note 3: The maintenance personnel of Tigerair Taiwan are all male.

Annual Bonus
Profiit Sharing

Retiree Association

Employee Benefit

Annual Leave Scheme

Childcare Benefits

Group Health Insurance

Commuting

Concession Tickets

Employee Stock Ownership Trust

Retirement Scheme

Pension Scheme

CAL attaches great importance to the rights and interests of its employees. CAL reports the management of the pension reserve fund to the Labor Pension Reserve Supervisory Committee on a quarterly basis. Prior to the end of each year, CAL allocates the amount required for the following year based on actuarial calculations and related regulations. In terms of allocation rates, the rate for the new labor retirement plan is 6%; the rate for the old labor retirement plan is 15%, which reaches the statutory upper limit, and this amount has been fully allocated in accordance with Paragraph 2, Article 56 of the Labor Standards Act to ensure that employees receive retirement benefits to which they are entitled.

Salary, Benefits and Pension Reserve Fund of CAL Group

Item 2017 2018 2019
Salary 15,760 16,580 16,998
Benefits 216 203 213
Pension reserve fund 5,710 6,184 6,347
Item 2017 2018 2019
Salary 699 780 864
Benefits 6.3 6.8 6.9
Pension reserve fund 243 384 352
Item 2017 2018 2019
Salary 646 724 870
Benefits N/A 3.65 4.85
Pension reserve fund 1.42 1.90 2.53

Unit: TWD million

Note 1: Benefits offered by CAL / Mandarin Airlines included travel allowances, allowances for the elderly, scholarships, Labor Day gift money, spring parties, and anniversary expenses.

Note 2: Benefits offered by Tigerair Taiwan included travel subsidies, club allowances, birthday cash gifts, Mid-Autumn Festival and Dragon Boat Festival gift vouchers, spring parties, and family day activities.

Friendly Workplace

CAL cares deeply about the physical and mental health of our employees. Each year, we organize a number of activities that foster a friendly workplace and provide care for our employees. In 2019, we organized 8 employee care activities and more than 320 employees participated, relieving stress through exercise. CAL also invited speakers to lecture on healthcare and organized CAL Sky Day and an Ice Making Party, encouraging employees to pursue a healthy and sustainable lifestyle.

Move Your Body — Aerobics Class

Stress Relief — Essential Oil Candle Making

Employee Communication

Each and every employee matters to CAL. We maintain multiple channels of communication with our employees, such as regularly scheduled labor-management meetings, and strive to find solutions to problems. We have established an employee care mailbox, a sexual harassment mailbox with an associated grievance hotline, and also a "Speak Your Mind" employee communication mailbox. In addition, our Team+ internal company messaging software enables employees to express their opinions and make suggestions at any time. When facing significant operational changes that will affect employees, CAL gives notice in compliance with relevant labor regulations and promptly communicates with labor unions and employees. Information on material issues and employee rights is made available on CAL's website or e-mailed to all employees. When employees express concerns about certain internal regulations or practices, CAL seeks to clarify the issue and communicate with the employees more frequently.

Versatile Communication Channel

Quarterly Labor-management Meetings

Meetings are held on a regular basis, allowing CAL to communicate with CAEU representatives. Meetings between front-line divisions / departments and corresponding CAEU branches are held separately.

Supervisor Mailbox

CAL encourages employees to express opinions and give suggestions through the Level 1 supervisor mailbox.

"Speak Your Mind" Employee Portal

CAL encourages employees to express opinions and give suggestions through the "Speak Your Mind" Employee Portal on the Intranet.

Employee Care Mailbox

The Human Resources Division has set up an employee complaint e-mail (wecare@china-airlines.com) to protect employees' rights and interests.

Team+

This internal company messaging system is offered to employees for free, to facilitate two-way communication and instant reporting to supervisors.

Labor Unions

At present, CAL cooperates with several labor unions and remains committed to maintaining open communication to negotiate reasonable agreements. We show the same respect to all unions and provide considerable resources in accordance with the law. In particular, the China Airlines Employees Union (CAEU) is a member of the Chinese Federation of Labor. There are six subordinate branches under CAEU which are classified based on the location of members and business:

  • Branch 1 : Divisions in Head Office
  • Branch 2 : Flight Operations Division
  • Branch 3 : Inflight Supply Chain & Marketing Division
  • Branch 4 : Maintenance Division, Engineering Division, Quality Assurance Division
  • Branch 5 : Taipei Branch, Ground Service Division and Cargo Sales, Marketing & Service Division
  • Branch 6 : Kaohsiung Branch.

There are five subordinate branches under Mandarin Airlines Employees Union (MDAEU):

  • Branch 1 : Divisions in Taipei Head Office, Taichung Branch, and Taichung Station
  • Branch 2 : Flight Operations Division and Operation Control Center
  • Branch 3 : Inflight Services Department
  • Branch 4 : Customer Services Division
  • Branch 5 : Engineering & Maintenance Division

In 2019, a total of 10,201 CAL employees participated in CAEU, accounting for 99.48% of the total workforce. A total of 851 Mandarin Airlines employees participated in the Mandarin Union, accounting for 90.72% of the total workforce. In 2002, CAL entered into a collective agreement with CAEU, the first such collective agreement in Taiwan's aviation industry. In January 2017, Mandarin Airlines also entered into a collective agreement with MDAEU, with the coverage rates of CAL and Mandarin Airlines being identical to the aforementioned participation rates. The agreement states clauses regarding union activities, labormanagement meetings and dispute resolution, employment and termination, working hours, leave and vacations, salary, allowances and bonuses, personnel transfers, rewards, and disciplinary actions, employee benefits, training, and occupational safety and health. The purpose of the agreement is to protect and enhance the rights and interests of employees. CAL is now renewing the collective agreement with CAEU in 2018 to maintain stable labormanagement relations.

CAL / Mandarin Airlines cooperates and communicates with CAEU / MDAEU through various channels as a partner and based on mutual dependence. In addition to regular meetings held between the Head Office and CAEU / MDAEU, divisions and corresponding branches of CAEU / MDAEU hold labor-management meetings to discuss the labor-management proposals. All resolutions will be handled once they are reported. In addition, meeting minutes taken at labor-management meetings held at the Head Office are published and made available to all employees on CAL's website / Mandarin Airlines's website. CAL / Mandarin Airlines is dedicated to maintaining harmonious labor-management relations through open, efficient channels of communication.

Union Participation Rate of CAL and Mandarin Airlines

  • Note 1: The number of CAL participants refers to the number of people being members of CAEU in the year (including employees in Taiwan); hourly-basis employees, interns, contracted employees, and executives higher than the rank of vice president are not included.
  • Note 2: The number of Mandarin Airlines participants refers to the number of people being members of MDAEU in the year (including employees in Taiwan below the rank of vice president (inclusive) and expatriate executives in Mainland China); hourly-basis employees and contracted employees are not included.
  • Note 3: Tigerair Taiwan does not have a labor union currently.

Employee Engagement

CAL has established diversified and unobstructed communication channels to listen to employees' suggestions attentively in line with its belief that employees are the Company's most important asset. Through an employee satisfaction survey, CAL understood employees' opinions of and needs for the Company and each unit, which served as a reference for CAL to provide a stable work environment. This would further increase employees' work efficiency and create a virtuous circle-based excellent corporate culture.

The employee satisfaction survey this year was held from April 10 through April 26, 2019. Conducted by an external consulting firm, the online anonymous questionnaire survey covered six major dimensions, including Organizational Health, Corporate Culture, Leadership, Job & Career, Working Environment, and Compensation and Benefits, with 3,732 valid questionnaires (effective response rate was 36.00%, of which 2,332 males accounted for 62.49% and 1,400 females accounted for 37.51%). Among the survey results, the overall recognition of Organizational Health obtained the highest score, followed by Working Environment, Leadership, Compensation and Benefits, Job & Career, and Corporate Culture.

The analysis results were not significantly different from the previous survey. In particular, in the gender-based analysis, there was no obvious difference (6.5 for males and 6.2 for females). The overall satisfaction rate was slightly lower than the previous survey. It was speculated that it might be affected by the pilot strike in 2019 right before the survey was conducted (for details, please refer to pages 82-84 in Chapter 2-2 Human Resources of CAL 2018 CSR report).

This survey analysis report was also provided to the relevant supervisors as a reference for subsequent improvement plans. The main improvements are shown in the following table.

Relevant Improvements Corresponding Dimension
Organized the "Air Service Team Building Camp" to stimulate group honors and the common good; used online teaching and instant feedback to strengthen contact and mutual trust, and actively promoted internal personnel to develop digital training materials to enhance employees' own value and to cultivate talents for the organization.
  • Organizational Health
  • Corporate Culture
  • Job & Career
Strengthened message transmission (including strengthening the communication function of mobile devices) to let the team members know the Company better and to bridge the distance between the team members and the colleagues at the Company / office.
  • Organizational Health
  • Corporate Culture
  • Leadership
Established schedule modules, incorporated the modules into the schedule system, and optimized the schedule.
  • Working Environment
  • Compensation and Benefits
A total of 75 people participated in two career experience camps.
  • Job & Career
  • Working Environment
A total of 374 people participated in supervisor vitality camps, employee interviewing skills sessions, and motivation lectures, helping supervisors across different units build a consensus and improving the leadership.
  • Corporate Culture
  • Leadership
  • Job & Career
Offered creative thinking lectures to enhance employees' innovation (42 participants)
  • Corporate Culture
  • Job & Career
Organized four expert sharing sessions with 722 participants, to deepen the understanding of other units to facilitate future cooperation.
  • Organizational Health
  • Job & Career
  • Working Environment
Add two-way communication after technical symposium, affair interchange meeting of chief pilots, and actively exchanged ideas and communicated with employees, as well as identified problems and assisted in solving the problems for them in the front line.
  • Corporate Culture
  • Leadership
  • Working Environment
The management above the supervisory level has been required to inspect and observe front-line operations. If employees are found to be unreasonably treated by passengers, the leaders must come forward to protect them.
  • Organizational Health
  • Corporate Culture
  • Leadership
  • Working Environment

Healthy and Safe Workplace

In accordance with the Labor Standards Act, CAL has established an Occupational Safety and Health Committee. The Committee is tasked with the objectives of preventing occupational hazards and protecting the safety and health of all employees by reviewing, coordinating, and making recommendations pertaining to safety and health related matters. The President acts as the chairperson. One deputy chairperson and one executive secretary are appointed. Members consist of Level 1 managers, occupational health and safety employees, engineers, and medical personnel from the designated divisions / departments as well as representatives appointed by labor unions. A meeting is held once every three months to review and analyze occupational incidents. All incidents are followed up and reported to the management so that related health management solutions can be subsequently developed. In 2019, a total of 14 safety and health proposals were reviewed and discussed, 12 of which have been closed and 2 is still ongoing. Meeting minutes were published on the EIP website; a total of 98 occupational safety reports were compiled, 98 of which were improved and closed with an achievement rate of 100.00%

Five Major Goals of CAL's Occupational Safety and Health


Proportion of Labor Representatives in Occupational Health and Safety Committee of CAL Group in 2019

Occupational Safety and Health Committee 2017 2018 2019
Proportion of labor representatives in Taipei Branch (%) 36.36 36.36 36.36
Proportion of labor representatives in Taoyuan (%) 38.45 38.46 36.53
Proportion of labor representatives in Kaohsiung Branch (%) 38.00 37.50 37.50
Proportion of labor representatives in EMO (%) 34.78 34.78 34.78
Composition of Occupational Health and Safety Committee 2017 2018 2019
Proportion of Labor Representatives 33.33 33.33 33.33
Occupational Safety and Health Committee 2017 2018 2019
Proportion of Labor Representatives 38.46 38.46 38.46

Note 1: Labor representative proportion = (Occupational Health and Safety Committee labor representatives / Occupational Health and Safety Committee total members) × 100%.

Dual International Certification of Occupational Health and Safety

To implement safety and health management more efficiently, systematically, and in accordance with both international trends and domestic and foreign standards, CAL has established an independent safety and health management system and enhanced risk controls in line with international standards. On April 20, 2019, CAL obtained ISO45001:2018 and TOSHMS certifications for our safety and health management system, which adopts the PDCA model. The intent is to control risks associated with occupational hazards and occupational diseases; improve implementation of occupational safety and health management; and carry out the occupational safety policy, thus providing employees with a safe, healthy, comfortable work environment.


Occupational Hazards Statistics of CAL Group in 2019
  Disabling Injury Frequency Rate Disabling Injury Severity Rate Occupational Disease Rate Absence Rate Number of Incidents Resulting in Work-Related Fatalities
China Airlines Male 1.60 50 0.00 0.66% 0.00
Female 4.56 85 0.00 2.60% 0.00
All Employees 2.97 66 0.00 1.57% 0.00
Mandarin Airlines Male 0.00 0 0.00 0.66% 0.00
Female 1.04 5 0.00 0.96% 0.00
All Employees 0.54 3 0.00 0.81% 0.00
Tigerair Taiwan Male 4.87 11 0.00 0.02% 0.00
Female 5.00 8 0.00 0.01% 0.00
All Employees 4.94 10 0.00 0.01% 0.00
  • Note 1: Disabling injury frequency rate(FR) = (Number of annual disabling injuries ÷ Annual working hours) × 1,000,000
  • Note 2: Disabling injury severity rate(SR) = (Absence days of annual disabling injuries ÷ Annual working hours) × 1,000,000
  • Note 3: Absence rate = (Absence days ÷ Annual working days) × 100%
  • Note 4: Mandarin Airlines / Tigerair Taiwan only have one business location in Taiwan.